Manatt Partner Comments on City's Measure to Tax Sugar-Sweetened Beverages

"Calif. City's Sugary Drink Tax Measure May Face Legal Battles"
Law360

July 26, 2012 - Manatt's Thomas McMorrow, a partner in the firm's Government & Regulatory Division, spoke to Law360 about a tax on sugary beverages that is being proposed by a California city.

Law360 reports that the city of El Monte put a measure on the ballot that would impose a one-cent-per-ounce tax on sodas and other sugar-sweetened beverages for sale in the city. It predicts the tax would generate between $3.5 million and $7 million in additional yearly revenue, as well as promote a healthy lifestyle.

Legal professionals say the measure is likely to attract lawsuits. 

"Somebody will find a way to sue; they always do," said McMorrow. "This tax seems to me to be arbitrary. They're veiling the whole notion by saying, 'Sugary drinks are bad, and we're going to help by taxing them.' But they're ignoring the reality that if they're going to tax sugary drinks, what about sugar in everything else? What about sugar packets at Starbucks?"

If the measure is worded narrowly, challenges are likely to come from beverage retailers, distributors and manufacturers, but if its language is broad, it could face opposition from restaurants, grocery stores, retailers and business groups, he said.

"I would expect the opposition to win," he added. "The opposition is likely to have powerful arguments that lie in basic logic and personal freedom."

Read the article here.